Fianna Fáil TD Declan Breathnach says farmers in Louth are extremely worried about their future CAP payments following a proposal from the European Commission this week that it wants to reduce CAP funding by 5%.
The Commission flagged the cut as part of the EU budget for 2021-2027.
Deputy Breathach commented, “The proposal of a 5% cut in the CAP budget is an extremely worrying development and will strike fear in the hearts of farm families here in Louth and right around the country.CAP payments make up around 75% of total farm incomes and are essential to the viability of these farms.Any reduction in these payments will cause major financial hardship for farmers, who are already in a precarious situation with average incomes forsucklerbeef and sheep farmers averaging under €13,000.
“The EC is proposing a 5% cut in CAP funding.However, over the 7 year period of the budget term, this could leave farmers facing a cut of well over 15% once inflation is taken into account.This is on top of the 10% cut which was imposed under the 2014-2020 CAP deal.This is more than the majority of farmers can cope with.
“The UK’s decision to leave the EU leaves a €4bn hole in the CAP budget, but instead of cutting funding levels, the remaining EU27 should make additional contributions to make up the shortfall.
“Fine Gael presided over the last 10% cut in CAP funding.Farmers will not tolerate another reduction in the budget.The Government must stand up for farm families and ensure that farmers do not lose any funding under the new budget proposals”.– Ends –